Tax Considerations at the Altar: Physician Practice Tax Considerations for Private Equity Acquisitions and Affiliations

• September 01, 2024

• Kevin Erb , Husch Blackwell LLP
• Albert Lin , Husch Blackwell LLP

Over the past decade, it has become common for physician practices to partner with private equity firms.¹ Private equity firms argue that they can provide access to increased financial capital, more favorable payor agreements, and greater purchasing power for expenses such as insurance, employee benefits, and medical equipment. Private equity firms may also offer sophisticated and experienced individuals to assist a practice with business, legal, billing, marketing, and human resources needs.² Private equity affiliations are generally structured such that physicians remain in control of providing medical care while the private equity firm assumes most management and administrative responsibilities. This article discusses important corporate and tax issues that parties to a private equity affiliation will need to consider when negotiating, structuring, and entering into a transaction.

ARTICLE TAGS

• Tax and Finance Practice Group
• Governance
• Health Care Finance and Transactions
• Industry Transactions News (Acquisitions, Affiliations, and Mergers)
• Tax and Nonprofit